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SmartPOS > Blogs > Business > Easy Ways To Manage Your Store’s Inventory

Easy Ways To Manage Your Store’s Inventory

Posted by: Amogh Balaji
Manage your store’s inventory easily with our retail management software

Easy Ways To Manage Your Store’s Inventory

The inventory is the core part of retail businesses. How you organize and manage it determines how efficiently your store will run. As you know, your inventory contains products that you sell to your customers. And to successfully make sales, you must make sure you have a well-stocked inventory.

Keeping tabs on your inventory is crucial. It helps you avoid understocking and overstocking products. Furthermore, it also helps you curb unnecessary expenses and improve returns on investments. The best way to manage your retail store’s inventory is to use a Point of Sale software solution. It simplifies the process of inventory management. We’ll tell you how.

What are the five types of inventory?

Before we discuss the most efficient ways to oversee your inventory, let’s go over what the five main types of inventory are.

Merchandise inventory

Merchandise inventory is the most commonly known inventory in the retail industry. It is the goods that retail stores procure from suppliers or manufacturers. They are finished goods. So the inventory that a store has at any given time is merchandise inventory. Keep in mind that raw materials do not classify for this type of inventory.

Manufacturing inventory

Manufacturing inventory is specific to industries that make use of raw materials to make finished goods. The raw materials are the manufacturing inventory. An example of this type of inventory is milk. Industries can process it into milk, butter, and cheese. There are three subtypes under manufacturing inventory. They are raw materials, Work In Progress (WIP) goods and finished goods.

Raw materials

Raw materials are the goods that manufacturing companies haven’t yet put to use. That means these goods are neither a work-in-progress nor are they finished. Calculating the cost of raw materials in the inventory calls for the addition of the costs of materials in the production process with manufacturing overhead costs.

Work-In-Progress (WIP)

Work-in-progress goods are goods that are neither finished nor are they raw materials. They are the midpoint of the manufacturing process. Keeping inventory at this stage hinders business prospects. Not to mention the space WIP goods occupy in warehouses. Improving manufacturing speeds minimizes WIP stock.

Finished goods

Finished goods are the outcome of completing the manufacturing process. When it is still in the manufacturing company’s possession, it can also be called manufacturing inventory. When retailers receive finished goods, it becomes merchandising inventory. Manufacturing organizations can either produce the goods and sell them or can choose to produce goods after receiving orders.

Manage your store’s inventory in these 5 ways

Track dispatch of goods

With a POS software solution, you can seamlessly keep track of the products you purchase from suppliers. The software notifies you whether the order is confirmed, dispatched, and in transit. Additionally, it shows you how long it will take for the products to reach your store. This way you can manage your inventory efficiently.

Identify purchase trends

It’s not merely about how well-stocked your inventory is, it’s also about what your inventory is stocked upon. Having goods that have no demand will result in meager sales. On the bright side, POS systems can analyze consumer behavior by analyzing their past purchases. Thereafter, it shows you what products customers buy the most. Consequently, you can focus on prioritizing the restocking of those items.

Map out where your products are stored in the store

After stocking up on inventory, you will need to arrange them on the shelves in your store. Where you arrange what products affect the way shoppers purchase items. It is advisable to arrange top-selling products at the front of the store. This makes it easy for customers to add to their carts. Using a POS solution, you will have a digital map of what products are arranged on which shelves.

Autostock items

When you use manual tools like spreadsheet software to manage your inventory, you will need to manually count items in your inventory. That’s not the case with a POS system. It tracks the number of stocks in your inventory in real-time. Another unique feature of the software is that it can auto-purchase items. It executes this action when it senses low stock of specific items in your inventory.

Manage received goods

Your store’s inventory must-have goods that are in good condition and have a long enough expiry date. If the goods that you purchase from suppliers don’t meet these criteria, then you will need to exchange them. POS solutions make this a hassle-free task. By simply opening up an exchange form, adding in the items, and specifying the supplier, your exchange will be initiated.

4 ways of achieving proper inventory control

Inventory control is an essential aspect of inventory management. The practice ensures that there is enough stock in store to meet customer demand at any given time. To effectively execute it, you require comprehensive information on purchases, sales, customer satisfaction, and more. The practice of inventory control gives your store fantastic returns on low stock investments.

Lack of inventory tracking routines leads to expensive disasters. The result of which can be overstocking or running out of stock. Stores invest a lot of capital in their inventories. Discrepancies in turning them over hamper profits. Inventory control limits the purchase of excessive inventory and having too less of it. That results in lesser expenses and higher profits.

So inventory control fundamentally improves your business in many ways. Keeping track of your stock and purchasing the right amount leads to better sales and customer satisfaction. Other key areas of your business that inventory control improves include:

  • Reduction of spoilage
  • Prevention of dead stock
  • Prevention of loss of goods
  • Cost-efficiency

There are multiple ways to execute inventory control strategies. You have the option of using paper-based tools, spreadsheet software, and a dedicated inventory management software solution. The first two methods are apt for small-scale businesses, but not entirely. An inventory management system is the best tool for enterprises of any size. Now, let’s take a look at the four ways of achieving proper inventory control.

  • Timely audit – Conduct timely audits to verify that the stock in your store matches the records in your database.
  • Analyze customer demand – Monitor what products customers are purchasing and the products that are losing demand.
  • Set reorder points – Set a minimum stock quantity value so that when your inventory drops below that threshold, you know it’s time to replenish it.
  • Manage supplier relationships – Maintain close relationships with suppliers to negotiate product returns and swift restock.

Conclusion

Point of Sale systems are the aptest tools for managing your store’s inventory. Beyond that, they can also manage accounts, customers, sales, and much more. Looking to boost your retail operations? Then purchase SmartPOS. It is our state-of-the-art POS software solution that is cloud-based, feature-rich, and has industry-leading security layers. Get in touch with us to get a live demo of SmartPOS today.

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